US Homeowners Insurance Premiums Jump 24% to $3,303 as Climate Risks Push Costs Higher
Updated
Updated · CNBC · Jun 2
US Homeowners Insurance Premiums Jump 24% to $3,303 as Climate Risks Push Costs Higher
1 articles · Updated · CNBC · Jun 2
Summary
$3,303 is now the average annual US homeowners insurance premium, up 24% from 2021 to 2024, with Louisiana and Nebraska averaging more than $6,000 a year.
Inflation in repair and rebuilding costs, more severe storms and wildfires, higher Reinsurance prices, and migration into riskier areas have all driven premiums sharply higher.
A $1,000 deductible can cut premiums by as much as 25%, while bundling policies may save 5% to 15% and shopping around can save some homeowners $2,000 or more a year.
Mitigation upgrades such as storm shutters, stronger roofs and wildfire-resistant features can lower risk, but they often require large upfront spending—more than $5,800 for some wildfire upgrades and $13,000 to $19,000-plus for hurricane shutters.
Experts also urge homeowners to avoid small claims, review coverage limits annually, maintain good credit, and factor insurance costs and disaster exposure into where they buy a home.